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  Exhibit 10.4    
    


 
 

  CLARIENT, INC.
  
    2007 INCENTIVE AWARD PLAN
  
    STOCK OPTION GRANT NOTICE AND
  STOCK OPTION AGREEMENT    
    


        Clarient, Inc., a Delaware corporation (the "Company"), pursuant to its 2007
Incentive Award Plan (the "Plan"), hereby grants to the holder listed below ("Participant"), an option
to purchase the number of shares of the Company's common stock, par value $0.01 ("Stock"), set forth below (the
"Option"). This Option is subject to all of the terms and conditions set forth herein and in the Stock Option Agreement attached hereto as  Exhibit A (the "Stock Option Agreement") and the Plan, which are incorporated herein by
reference. Unless otherwise defined in this Grant Notice or in the Stock Option Agreement, the terms defined in the Plan shall have the same defined
meanings in this Grant Notice and the Stock Option Agreement. 





			
	



Participant:	

 	



Raymond J. Land
	

Grant Date:	
 	

June 10, 2008
	

Exercise Price per Share:	
 	

$2.08
	

Total Exercise Price:	
 	

$1,040,000
	

Total Number of Shares Subject to the Option:	
 	

500,000 Shares
	

Expiration Date:	
 	

06/10/2018










					
	Type of Option:	 	ý Incentive Stock Option	 	o Non-Qualified Stock Option
	

Vesting Schedule:	
 	

06/05/2009	
 	

25%
	 	 	06/05/2009-06/05/2012	 	Remaining 75% in substantially equal monthly installments
	 	 	06/05/2012	 	100%
	

 	
 	
The vesting outlined in the preceding schedule shall be subject to and conditioned upon the Participant's continued employment and shall cease upon the Participant's Termination of Employment. In addition to the
foregoing, if a Change of Control occurs during the Participant's term of employment with the Company, then the Option shall become fully vested and exercisable as to all shares that remain unvested immediately prior to the consummation of such
Change in Control.







        By
his or her signature, the Participant agrees to be bound by the terms and conditions of the Plan, the Stock Option Agreement and this Grant Notice. The Participant has reviewed the
Stock Option Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all
provisions of this Grant Notice, the Stock Option Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon
any questions arising under the Plan or relating to the Option. 





							
	CLARIENT, INC.	 	PARTICIPANT
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	





 	 	 	 	





 
	Print Name:	 	Ronnie A. Andrews	 	Print Name:	 	 
	 	 	





 	 	 	 	





 
	Title:	 	Chief Executive Officer	 	 	 	 
	 	 	





 	 	 	 	 
	Address:	 	31 Columbia, Aliso Viejo, CA	 	Address:	 	 
	 	 	





 	 	 	 	





 
	 	 	 	 	 	 	





 









 
 
 

  EXHIBIT A
  
    TO STOCK OPTION GRANT NOTICE
  
    STOCK OPTION AGREEMENT    
    


        Pursuant to the Stock Option Grant Notice (the "Grant Notice") to which this Stock
Option Agreement (this "Agreement") is attached, Clarient, Inc. a Delaware corporation (the
"Company"), has granted to the Participant an option under the Company's 2007 Incentive Award Plan (the
"Plan") to purchase the number of shares of Stock indicated in the Grant Notice. 


 
 

  ARTICLE I.
  
    GENERAL    
    



        1.1    Defined Terms.    Wherever the following terms are used in this Agreement they shall have the meanings
specified below, unless the context clearly indicates otherwise. Capitalized terms not specifically defined in the Grant Notice or this Agreement shall have the meanings specified in the Plan. 



        (a)   "Administrator" shall mean the Board or the Committee responsible for conducting the general administration of the Plan
in accordance with Article 12 of the Plan; provided that if the Participant is an Independent Director, "Administrator" shall mean the Board. 



        (b)   "Cause" shall mean (a) the Participant's failure to adhere to any
lawful written policy of the Company (unless the Participant's failure to adhere is at the request of the Board) if the Participant has been given a reasonable opportunity to comply with such policy
and cure the Participant's failure to comply (which reasonable opportunity to cure must be granted for a period of at least ten days and up to thirty days, if reasonable); (b) the Participant's
appropriation (or attempted appropriation) of a business opportunity of the Company, including attempting to secure or securing any personal profit in connection with any transaction entered into on
behalf of the Company; (c) the Participant's misappropriation (or attempted misappropriation) of any of the Company's funds or property (including without limitation trade secrets and other
intellectual property); or (d) the Participant's conviction of, or Participant's entering of a guilty plea or plea of no contest with respect to, a felony or the equivalent thereof. 


        (c)   "Change of Control" shall have the meaning provided in the Plan, except
that for purposes of the vesting schedule contained in the Grant Notice and the definition of Severance Termination only, Change of Control shall mean (a) the issuance, sale, transfer or
acquisition of shares of capital stock of the Company (including a transfer as a result of death, disability, operation of law, or otherwise) in a single transaction or a group of related
transactions, as a result of which any entity, person, or group (other than Safeguard Scientifics, Inc. and/or its affiliates) acquires the beneficial ownership of newly issued, outstanding or
treasury shares of the capital stock of the Company having 50% or more of the combined voting power of the Company's then outstanding securities entitled to vote for at least a majority of the
authorized number of directors of the Company or (b) any merger, consolidation, sale of all or substantially all the assets or other comparable transaction as a result of which all or
substantially all of the assets and business of the Company are acquired directly or indirectly by another entity (except Safeguard Scientifics, Inc. and/or any of its affiliates). An
"affiliate" of an entity is an entity controlling, controlled by, or under common control with the entity specified, directly or indirectly through one or more intermediaries. "Group" shall have the
same meaning as in section 13(d) of the Securities Exchange Act of 1934, and "beneficial ownership" shall have the meaning set forth in Rule 13d-3 of the Securities and
Exchange Commission adopted under the Securities Exchange Act of 1934. 



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        (d)   "Good Reason" shall mean (i) the Participant's assignment (without
the Participant's consent) to a position, title, responsibilities, or duties of a materially lesser status or degree of responsibility than the position, responsibilities, or duties of Chief Financial
Officer of a comparable publicly-held company or removal from his position as an executive officer of the Company, (ii) the relocation of the Company's offices at which the
Participant is principally employed to a location which is more than thirty miles from the location of the Company's principal offices on the date of this Agreement, (iii) the reduction of the
Participant's base salary or bonus opportunity, except pursuant to a reduction which also applies to the Company's other senior executives or (iv) the requirement that the Participant report to
any officer of the Company other than its Chief Executive Officer; provided, however, that the Participant must have given the written notice to the Company that the Participant believes he has the
right to terminate employment for good reason, within ninety (90) days of the initial occurrence of such event, and the Company fails to eliminate the good reason within fifteen
(15) days after receipt of the notice. Further, the Participant's termination of employment must occur within 2 years from the initial occurrence of an event that constitutes good
reason. 


        (e)   "Retirement" shall mean (i) with respect to an Independent
Director, a Termination of Directorship after the Independent Director has attained 55 years of age and completed at least three years of service on the Board and (ii) with respect to an
Employee or Consultant, a Termination of Employment or a Termination of Consultancy, as the case may be, after the Employee or the Consultant has attained 55 years of age and completed at least
five years of employment or consultancy service with the Company, as the case may be. 



        (f)    "Severance Termination" shall mean a Termination of Employment of the Participant by the Company without Cause, by the
Participant for Good Reason within twelve months after a Change of Control, or by reason of the Participant's death or disability. 


        (g)   "Termination of Consultancy" shall mean the time when the engagement of the Participant as a Consultant to the Company or
a Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, by resignation, discharge, death or retirement, but excluding: (a) terminations where
there is a simultaneous employment or continuing employment of the Participant by the Company or any Subsidiary, and (b) terminations where there is a simultaneous re-establishment
of a consulting relationship or continuing consulting relationship between the Participant and the Company or any Subsidiary. The Administrator, in its absolute discretion, shall determine the effect
of all matters and questions relating to Termination of Consultancy, including, but not by way of limitation, the question of whether a particular leave of absence constitutes a Termination of
Consultancy. Notwithstanding any other provision of the Plan, the Company or any Subsidiary has an absolute and unrestricted right to terminate a Consultant's service at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided otherwise in writing. 



        (h)   "Termination of Directorship" shall mean the time when the Participant, if he or she is or becomes an Independent
Director, ceases to be a Director for any reason, including, but not by way of limitation, a termination by resignation, failure to be elected, death or retirement. The Board, in its sole and absolute
discretion, shall determine the effect of all matters and questions relating to Termination of Directorship with respect to Independent Directors. 


        (i)    "Termination of Employment" shall mean the time when the employee-employer relationship between the Participant and the
Company or any Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, a termination by resignation, discharge, death, disability or retirement; but
excluding: (a) terminations where there is a simultaneous reemployment or continuing employment of the Participant by the Company or any Subsidiary, and (b) terminations where there is a
simultaneous establishment of a consulting 



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relationship
or continuing consulting relationship between the Participant and the Company or any Subsidiary, provided, that a Termination of Employment
shall only occur if such termination of the employee-employer relationship constitutes a "separation from service" (within the meaning of Section 409A(a)(2)(A)(i) of the Code). The
Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of
whether a particular leave of absence constitutes a Termination of Employment; provided, however, that, if this Option is an Incentive Stock Option, unless otherwise determined by the Administrator in
its discretion, a leave of absence, change in status from an employee to an independent contractor or other change in the employee-employer relationship shall constitute a Termination of Employment
if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations
and revenue rulings under said Section. 


        (j)    "Termination of Services" shall mean the Participant's Termination of Consultancy, Termination of Directorship or
Termination of Employment, as applicable. 




        1.2    Incorporation of Terms of Plan.    The Option is subject to the terms and conditions of the Plan which are
incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control, except that any definitions provided in the Grant Notice
or this Agreement with respect to capitalized terms shall supersede the definitions contained in the Plan. 


 
 

  ARTICLE II.
  
    GRANT OF OPTION    
    


        2.1    Grant of Option.    In consideration of the Participant's past and/or continued employment with or service to
the Company or a Subsidiary and for other good and valuable consideration, effective as of the Grant Date set forth in the Grant Notice (the "Grant
Date"), the Company irrevocably grants to the Participant the Option to purchase any part or all of an aggregate of the number of shares of Stock set forth in the Grant Notice,
upon the terms and conditions set forth in the Plan and this Agreement. Unless designated as a Non-Qualified Stock Option in the Grant Notice, the Option shall be an Incentive Stock Option
to the maximum extent permitted by law. 


        2.2    Exercise Price.    The exercise price of the shares of Stock subject to the Option shall be as set forth in the
Grant Notice, without commission or other charge; provided, however, that the price per share of the
shares of Stock subject to the Option shall not be less than 100% of the Fair Market Value of a share of Stock on the Grant Date. Notwithstanding the foregoing, if this Option is designated as an
Incentive Stock Option and the Participant owns (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any
"subsidiary corporation" of the Company or any "parent corporation" of the Company (each within the meaning of Section 424 of the Code), the price per share of the shares of Stock subject to
the Option shall not be less than 110% of the Fair Market Value of a share of Stock on the Grant Date. 



        2.3    Consideration to the Company.    In consideration of the grant of the Option by the Company, the Participant
agrees to render faithful and efficient services to the Company or any Subsidiary. Nothing in the Plan or this Agreement shall confer upon the Participant any right to continue in the employ or
service of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or
terminate the services of the Participant at any time for any reason whatsoever, with or without Cause, except to the
extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and the Participant. 


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  ARTICLE III.
  
    PERIOD OF EXERCISABILITY    
    


        3.1    Commencement of Exercisability.    



        (a)   Subject
to Sections 3.2, 3.3, 5.8 and 5.10, the Option shall become vested and exercisable in such amounts and at such times as are set forth in the Grant Notice. 


        (b)   No
portion of the Option which has not become vested and exercisable at the date of the Participant's Termination of Employment, Termination of Directorship or
Termination of Consultancy shall thereafter become vested and exercisable, except as may be otherwise provided by the Administrator or as set forth in the Plan or a written agreement between the
Company and the Participant. 




        3.2    Duration of Exercisability.    The installments provided for in the vesting schedule set forth in the Grant
Notice are cumulative. Each such installment which becomes vested and exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and exercisable until it becomes
unexercisable under Section 3.3. 


        3.3    Expiration of Option.    Except as provided in Section 3.4 below, the Option may not be exercised to any
extent by anyone after the first to occur of the following events: 



        (a)   The
expiration of ten years from the Grant Date; 


        (b)   If
this Option is designated as an Incentive Stock Option and the Participant owned (within the meaning of Section 424(d) of the Code), at the time the Option was
granted, more than 10% of the total combined voting power of all classes of stock of the Company or any "subsidiary corporation" of the Company or any "parent corporation" of the Company (each within
the meaning of Section 424 of the Code), the expiration of five years from the Grant Date; 


        (c)   The
expiration of three months from the date of the Participant's Termination of Services, unless such termination occurs by reason of the Participant's death,
Disability or Retirement, or is by the Company for Cause; 


        (d)   The
expiration of three years from the date of the Participant's Termination of Services by reason of the Participant's Retirement (it being understood that the
Participant acknowledges that an Incentive Stock Option exercised more that three months after the Participant's Termination of Employment, other than by reason of death or Disability, will be taxed
as a Non-Qualified Stock Option); or 


        (e)   Immediately
upon the Participant's Termination of Services by the Company for Cause. 




        3.4   Notwithstanding
anything contained herein to the contrary, (i) in the event that the Participant experiences a Severance Termination, the Option shall remain
outstanding and exercisable until the earlier to occur of (A) the first anniversary of the date of termination, or (B) the expiration of ten years from the Grant Date (it being
understood that the Participant acknowledges that an Incentive Stock Option exercised more than three months after the Participant's Termination of Employment, other than by reason of death or
Disability, will be taxed as a Non-Qualified Stock Option). 


        3.5    Special Tax Consequences.    The Participant acknowledges that, to the extent that the aggregate Fair Market
Value (determined as of the time the Option is granted) of all shares of Stock with respect to which Incentive Stock Options, including the Option, are exercisable for the first time by the
Participant in any calendar year exceeds $100,000, the Option and such other options shall be Non-Qualified Stock Options to the extent necessary to comply with the limitations imposed by
Section 422(d) of the Code. The Participant further acknowledges that the rule set forth in the preceding sentence shall be applied by taking the Option and other "incentive stock options" into 


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account
in the order in which they were granted, as determined under Section 422(d) of the Code and the Treasury Regulations thereunder. 


 
 

  ARTICLE IV.
  
    EXERCISE OF OPTION    
    



        4.1    Person Eligible to Exercise.    During the lifetime of the Participant, only the Participant may exercise the
Option or any portion thereof. After the death of the Participant, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 3.3, be
exercised by the Participant's personal representative or by any person empowered to do so under the deceased the Participant's will or under the then applicable laws of descent and distribution. 


        4.2    Partial Exercise.    Any exercisable portion of the Option or the entire Option, if then wholly exercisable,
may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3. 


        4.3    Manner of Exercise.    The Option, or any exercisable portion thereof, may be exercised solely by delivery to
the Secretary of the Company (or any third party administrator or other person or entity designated by the Company) of all of the following prior to the time when the Option or such portion thereof
becomes unexercisable under Section 3.3: 



        (a)   An
Exercise Notice in a form specified by the Administrator, stating that the Option or portion thereof is thereby exercised, such notice complying with all applicable
rules established by the Administrator; 


        (b)   The
receipt by the Company of full payment for the shares of Stock with respect to which the Option or portion thereof is exercised, including payment of any applicable
withholding tax, which may be in one or more of the forms of consideration permitted under Section 4.4; 



        (c)   Any
other written representations as may be required in the Administrator's reasonable discretion to evidence compliance with the Securities Act or any other applicable
law rule, or regulation; and 


        (d)   In
the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than the Participant, appropriate proof of
the right of such person or persons to exercise the Option. 




Notwithstanding
any of the foregoing, the Company shall have the right to specify all conditions of the manner of exercise, which conditions may vary by country and which may be subject to change from
time to time. 


        4.4    Method of Payment.    Payment of the exercise price shall be by any of the following, or a combination thereof,
at the election of the Participant: 



        (a)   Cash;



        (b)   Check;



        (c)   With
the consent of the Administrator, delivery of a notice that the Participant has placed a market sell order with a broker with respect to shares of Stock then
issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate exercise price;  provided, that payment of such proceeds is then made to the Company upon settlement of such sale; provided
further that executive officers of the Company may not pay the exercise price in the manner contemplated by this clause (c)); 



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        (d)   With
the consent of the Administrator, surrender of other shares of Stock which (A) in the case of shares of Stock acquired from the Company, have been owned by
the Participant for more than six (6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the shares of
Stock with respect to which the Option or portion thereof is being exercised; 


        (e)   With
the consent of the Administrator, surrendered shares of Stock issuable upon the exercise of the Option having a Fair Market Value on the date of exercise equal to
the aggregate exercise price of the shares of Stock with respect to which the Option or portion thereof is being exercised; or 



        (f)    With
the consent of the Administrator, property of any kind which constitutes good and valuable consideration. 




        4.5    Conditions to Issuance of Stock Certificates.    The shares of Stock deliverable upon the exercise of the
Option, or any portion thereof, may be either previously authorized but unissued shares of Stock or issued shares of Stock which have then been reacquired by the Company. Such shares of Stock shall be
fully paid and nonassessable. The Company shall not be required to issue or deliver any shares of Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the
following conditions: 



        (a)   The
admission of such shares of Stock to listing on all stock exchanges on which such Stock is then listed; 


        (b)   The
completion of any registration or other qualification of such shares of Stock under any state or federal law or under rulings or regulations of the Securities and
Exchange Commission or of any other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable; 



        (c)   The
obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in its absolute discretion, determine to be
necessary or advisable; 


        (d)   The
receipt by the Company of full payment for such shares of Stock, including payment of any applicable withholding tax, which may be in one or more of the forms of
consideration permitted under Section 4.4; and 


        (e)   The
lapse of such reasonable period of time following the exercise of the Option as the Administrator may from time to time establish for reasons of administrative
convenience. 




        4.6    Rights as Stockholder.    The holder of the Option shall not be, nor have any of the rights or privileges of, a
stockholder of the Company in respect of any shares of Stock purchasable upon the exercise of any part of the Option unless and until such shares of Stock shall have been issued by the Company to such
holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment will be made for a dividend or other right for which the
record date is prior to the date the shares of Stock are issued, except as provided in Section 11.1 of the Plan. 


 
 

  ARTICLE V.
  
    OTHER PROVISIONS    
    


        5.1    Administration.    The Administrator shall have the power to interpret the Plan and this Agreement and to adopt
such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations
and determinations made by the Administrator in good faith shall be final and binding 


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upon
Participant, the Company and all other interested persons. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith
with respect to the Plan, this Agreement or the Option. 



        5.2    Option Not Transferable.    The Option may not be sold, pledged, assigned or transferred in any manner other
than by will or the laws of descent and distribution, unless and until the shares of Stock underlying the Option have been issued, and all restrictions applicable to such shares of Stock have lapsed.
Neither the Option nor any interest or right therein shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by
transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such
disposition is permitted by the preceding sentence. 


        5.3    Adjustments.    The Participant acknowledges that the Option is subject to modification and termination in
certain events as provided in this Agreement and Article 11 of the Plan. 


        5.4    Notices.    Any notice to be given under the terms of this Agreement to the Company shall be addressed to the
Company in care of the Secretary of the Company at the address given beneath the signature of the Company's authorized officer on the Grant Notice, and any notice to be given to Participant shall be
addressed to Participant at the address given beneath Participant's signature on the Grant Notice. By a notice given pursuant to this Section 5.4, either party may hereafter designate a
different address for notices to be given to that party. Any notice which is required to be given to Participant shall, if Participant is then deceased, be given to the person entitled to exercise his
or her Option pursuant to Section 4.1 by written notice under this Section 5.4. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt
requested) and deposited (with
postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service. 



        5.5    Titles.    Titles are provided herein for convenience only and are not to serve as a basis for interpretation
or construction of this Agreement. 


        5.6    Governing Law; Severability.    The laws of the State of Delaware shall govern the interpretation, validity,
administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. 



        5.7    Conformity to Securities Laws.    The Participant acknowledges that the Plan and this Agreement are intended to
conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder,
and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to
conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations. 


        5.8    Amendments, Suspension and Termination.    To the extent permitted by the Plan, this Agreement may be wholly or
partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board, provided, that, except
as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely effect the Option in any material way without the prior written
consent of the Participant. 


        5.9    Successors and Assigns.    The Company may assign any of its rights under this Agreement to single or multiple
assignees, and this Agreement shall inure to the benefit of the successors and assigns 


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of
the Company. Subject to the restrictions on transfer herein set forth in Section 5.2, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators,
successors and assigns. 


        5.10    Notification of Disposition.    If this Option is designated as an Incentive Stock Option, Participant shall
give prompt notice to the Company of any disposition or other transfer of any shares of Stock acquired under this Agreement if such disposition or transfer is made (a) within two years from the
Grant Date with respect to such shares of Stock or (b) within one year after the transfer of such shares of Stock to him. Such notice shall specify the date of such disposition or other
transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by Participant in such disposition or other transfer. 



        5.11    Limitations Applicable to Section 16 Persons.    Notwithstanding any other provision of the Plan or
this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Option and this Agreement shall be subject to any additional limitations set forth in any applicable
exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive
rule. To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule 



        5.12    Not a Contract of Employment.    Nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue to serve as an employee or other service provider of the Company or any of its Subsidiaries. 


        5.13    Entire Agreement.    The Plan, the Grant Notice and this Agreement (including all Exhibits thereto) constitute
the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof. 



        5.14    Section 409A.    Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice,
the Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the U.S. Internal Revenue Code of
1986, as amended (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may
be issued after the date hereof, "Section 409A"). The Committee may, in its discretion, adopt such amendments to the Plan, this Agreement or the
Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Committee determines are necessary or
appropriate to comply with the requirements of Section 409A. 


        5.15    Information Rights.    To the extent required by Section 260.140.46 of Title 10 of the California Code
of Regulations, the Company shall provide to Participant, not less frequently than annually during the period such Participant has one or more Awards outstanding, and, in the case of a Participant who
acquires Stock pursuant to the Plan, during the period such individual owns such Stock, copies of annual financial statements of the Company. Notwithstanding the preceding sentence, the Company shall
not be required to provide such statements to key persons whose duties in connection with the Company assure their access to equivalent information. 


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Exhibit 10.4


CLARIENT, INC. 2007 INCENTIVE AWARD PLAN STOCK OPTION GRANT NOTICE AND STOCK OPTION AGREEMENT

EXHIBIT A TO STOCK OPTION GRANT NOTICE STOCK OPTION AGREEMENT

ARTICLE I. GENERAL

ARTICLE II. GRANT OF OPTION

ARTICLE III. PERIOD OF EXERCISABILITY

ARTICLE IV. EXERCISE OF OPTION

ARTICLE V. OTHER PROVISIONS